Inauguration of Corporate Governance Week 2008

The Bangladesh Enterprise Institute (BEI) organized Corporate Governance Week 2008 from January 13- 17, 2008. The inauguration ceremony of the Corporate Governance Week 2008 was held on January 13, 2008 in the Grand Ball Room of the Dhaka Sheraton Hotel from 9:30 am to 11:00 am.

Dr. A. B. Mirza Md. Azizul Islam, Honourable Adviser, Ministry of Finance and Planning, Caretaker Government of Bangladesh, inaugurated Corporate Governance Week 2008 as the Chief Guest.

Dr. Salehuddin Ahmed, Governor, Bangladesh Bank, and Mr. Faruq Ahmad Siddiqi, Chairman, Securities and Exchange Commission (SEC) of Bangladesh, were present at the inauguration as Special Guests. Mr. Farooq Sobhan, President, BEI, presided over the session.

The theme of the Corporate Governance Week 2008 is Corporate Governance for Growth, Development and Sustainability. The objective of the events of the week is to provide an opportunity to all the stakeholders: business enterprises; SOEs; regulators; academics; researchers; development organizations; and NGOs, in Bangladesh to discuss, share, and exchange views and experiences on various issues on corporate governance.

The week-long programme will facilitate stakeholders to strengthen and ensure good corporate governance practices in Bangladesh, which in today’s globalized world is considered an important element for growth, development and sustainability of business. The detailed programme of the week is attached for your reference.

While delivering the welcome address, Mr. Sobhan said that over the years BEI has played a critical role in promoting corporate governance in Bangladesh. After launching the first comprehensive Code of Corporate Governance for Bangladesh in 2004, BEI initiated a Corporate Governance Strengthening Project (CGSP), with the support of the Royal Netherlands Embassy in Dhaka, to raise both awareness as well as the standard of corporate governance in Bangladesh.

The project has served as an important platform to enhance the interaction between the business community, the regulatory agencies, the self regulatory bodies, and the civil society, in bringing to the forefront the key challenges faced by Bangladesh in promoting and upholding the principles of good corporate governance. In addition, CGSP has also enabled BEI to invite a number of leading international as well as local experts to speak at various conferences and round table meetings on different aspects of Corporate Governance. BEI has endeavored to facilitate the exchange of ideas and information and share cross-country experiences on the best practices on corporate governance.

The Chairman of the SEC appreciated the BEI’s initiative to organize a week-long programme. He said that corporate governance is an emerging issue in Bangladesh and that the week-long interaction among the stakeholders would certainly contribute to and strengthen corporate governance practice in this country. He said that Bangladesh needs to learn more about the regional and international developments in corporate governance and develop our own best practices taking into consideration Bangladesh’s development and socio cultural environment.

The Bangladesh Bank Governor highlighted the following steps undertaken by the central
bank to promote corporate governance in the banking sector of Bangladesh:
• Roles and functions of the Board and management were clarified and redefined;
• Number of Directors of Board was limited to 13;
• A person to be a director for a bank for more than six years at a stretch was debarred;
• Close relations of directors a bank were restricted to be directors;
• Appointment of two independent directors to protect depositors’ interest was decided;
• ‘Fit and proper’ test for Bank Directors and the Managing Directors were prescribed;
• Disclosure and transparency standards in accordance with International Audit Standard( specially IAS-30) have been introduced;
• Audit Committees were mandated for all banks with clear guidelines and Terms of reference. Banks have been asked to strengthen their internal control system;
• Credit rating of banks has been made mandatory.

Dr. A. B. Mirza Md. Azizul Islam, chief guest of the event, reiterated the importance of good corporate governance practices in Bangladesh.

Tuesday, January 15, 2008

Capacity Building Programme on Corporate Governance for State-Owned Enterprises in Bangladesh

The Bangladesh Enterprise Institute (BEI) organized a capacity building programme on Corporate Governance for SOEs in Bangladesh on Tuesday January 15, 2008 at the BEI Conference Room.

The objective of the seminar was to share cross country experiences relating to e-governance, e-procurement and e-marketing. This exchange and sharing of information is expected to assist the SOEs of Bangladesh to become more efficient and transparent in the governance process.

Dr. A. B. Mirza Mohammad Azizul Islam, Adviser, Ministry of Finance and Planning, Caretaker Government of Bangladesh, graced the occasion as the Chief Guest. Mr. Farooq Sobhan, President, BEI, presented a keynote paper on Improving the Performance of the Boards of the SOEs in Bangladesh.

While presenting his paper, Mr. Farooq Sobhan said that the SOEs have been a drain on the Government’s Exchequer for the last fifteen years. He also said that the board members of the SOEs are not always equipped with the right knowledge and skills. The boards have a critical role to play in developing the right strategies for improving the performances of the SOEs. He suggested that the board members undergo a two-day mandatory training programme on their role and responsibilities in ensuring good corporate governance practices in the SOEs.

As the Chief Guest of the event, the Finance Adviser said that corporate governance for SOEs is a priority area for the Government. The recommendations forwarded by BEI are already in the process of implementation at the policy level. The Ministry of Finance and Planning is currently preparing a panel to include members who can efficiently contribute as board of directors in SOEs. The chief guest suggested that BEI should design a two-day training programme on corporate governance for the board members of SOEs. The first day to be an orientation for the SOEs and the second day to be on sector specific trainings, such as, manufacturing, and banking. The Finance Adviser also said that the initiative would begin with the Ministry of Finance and Planning. He also said that the SOEs have become a financial burden for the Government and that this practice should not continue. The SOEs must operate on a commercial basis to earn profit to compete with their private sector counterpart.

In addition, international experts on corporate governance Dr. Y. R. K. Reddy, Chairman, Academy of Corporate Governance and Yaga Consulting, India, and K. Padmakumar, Secretary, Public Sector Restructuring and Internal Audit Board (RIAB), Government of India, also shared their experiences with the audience.

Wednesday January 16, 2008

Capacity Building Programme on Corporate Governance for the Senior Officials of the Regulatory Bodies of Bangladesh

The Bangladesh Enterprise Institute (BEI) organized a Capacity Building Programme on Corporate Governance for the Senior Officials of the Regulatory Bodies of Bangladesh on Wednesday January 16, 2008 from 10:00 A.M. to 1:00 P.M. at the BEI Conference Room (House 20, Road 5, Gulshan – 1, Dhaka – 1212).

The objective of the seminar was to discuss and share the role and responsibilities of the various regulatory bodies in ensuring good corporate governance practices for sustainable growth and development.

Dr. Akbar Ali Khan, Chairman, Regulatory Reforms Commission, and Former Adviser to the Caretaker Government of Bangladesh, graced the occasion as the Chief Guest.

Sheikh Md. Mubarak Hossain, Registrar, Registrar of Joint Stock Companies & Firms (RJSC), Dr. Masihur Rahman, Managing Director, Credit Rating Agency of Bangladesh Ltd. (CRAB), and Mr. Muzaffar Ahmed, CEO & President, Credit Rating Information and Services Ltd. (CRISL) spoke on the occasion. Mr. Farooq Sobhan, President, BEI, will chair the event.

International experts on corporate governance Dr. Y. R. K. Reddy, Chairman, Academy of Corporate Governance and Yaga Consulting, India, and K. Padmakumar, Secretary, Public Sector Restructuring and Internal Audit Board (RIAB), Government of India, will also be sharing their experiences with the audience.

Thursday January 17, 2008

The Closing Ceremony the Corporate Governance Week 2008

The Bangladesh Enterprise Institute (BEI) organized a Corporate Governance Week 2008 from January 13- 17, 2008. The Closing Ceremony of the week was held at the BEI Conference Room on January 17, 2008.

In the morning of the last day on Corporate Governance Week 2008, BEI organized a Capacity Building Programme on Succession Planning for Long Term Competitiveness of the Private Sector of Bangladesh for the relevant stakeholders. Mrs. Geeteara Safiya Chowdhury, Former Adviser, Ministry of Industries, was present at the seminar as the Chief Guest.

Certificates and prizes were distributed among the winners of an essay competition which was organized by BEI on Principles and Practices of Corporate Governance earlier this year.

Professor Mohammed Farashuddin, Founder Vice Chancellor, East West University and Former Governor, Bangladesh Bank, and Professor Bazlul Mobin Chowdhury, Vice Chancellor, Independent University Bangladesh, attended the concluding ceremony as the Special Guests. The Special Guests handed over the certificates and the prizes to the winners of the essay competition.

Kazi Mahmood Sattar, Managing Director, The City Bank Limited and the Chairman of Association of Bankers Bangladesh; and Mr. Anis A. Khan, CEO and Managing Director, IDLC Finance Limited, were present at the event as respected judges of the essay competition.

Professor Farashudin said that the State-owned Enterprises cannot be wished away or changed overnight but they can always go through reforms for bringing about positive changes in the SOEs and contribute significantly to the growth of the economy. He said that competence of the board in this regard is very important.

He commended BEI for the instrumental role it has been playing in bringing about awareness on corporate governance issues. He said that the neighboring countries of Bangladesh have well crossed the awareness stage; however, Bangladesh needs more awareness building programmes on corporate governance in order to ensure wider adoption and implementation.

Professor Farashuddin said that the progress that Bangladesh has made in recent times is tremendous. He spoke about the corporate governance measures taken by the Bangladesh Bank and the guidelines of the Securities and Exchange Commission (SEC) of Bangladesh.

The theme of the Corporate Governance Week 2008 was Corporate Governance for Growth, Development and Sustainability. The objective of the events of the week was to provide an opportunity to all the stakeholders: business enterprises; SOEs; regulators; academics; researchers; development organizations; and NGOs, in Bangladesh to discuss, share, and exchange views and experiences on various issues on corporate governance.

The week-long event comprised of five capacity building programmes to facilitate stakeholders to strengthen and ensure good corporate governance practices in Bangladesh. Corporate Governance in today’s globalized world is considered an important element for growth, development and sustainability of business. The programmes were designed to cater to the needs of the various stakeholder groups.

The inauguration ceremony of the Corporate Governance Week 2008 was held on January 13, 2008 in the Grand Ball Room of the Dhaka Sheraton Hotel.

Dr. A.B. Mirza Md. Azizul Islam, Honourable Adviser, Ministry of Finance and Planning, Caretaker Government of Bangladesh, inaugurated Corporate Governance Week 2008 as the Chief Guest. Dr. Salehuddin Ahmed, Governor, Bangladesh Bank, and Mr. Faruq Ahmad Siddiqi, Chairman, Securities and Exchange Commission (SEC) of Bangladesh, were present at the inauguration as Special Guests.

Closing Ceremony of the Corporate Governance Week 2008 and Prize Giving Ceremony of the Essay Competition

For further information about Corporate Governance Week 2008, please contact Mr. Asif Ayub, Research Associate, BEI, or Mr. Rashedur Rahman, Research Associate, BEI.